The Rosen Law Firm said on April 29 that it continues to investigate potential securities claims on behalf of shareholders of PennyMac Financial Services, Inc., over allegations that the mortgage company may have issued materially misleading business information to investors. The firm said it is preparing a class action to seek recovery of investor losses.
The inquiry centers on PennyMac’s Jan. 29 filing with the Securities and Exchange Commission, when the company reported fourth-quarter and full-year 2025 results. PennyMac said servicing segment pretax income was $37.3 million, down from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024. It also said pretax income excluding valuation-related items was $47.8 million, down 70 percent from the prior quarter.
PennyMac said the decline was driven primarily by increased realization of mortgage servicing rights cash flows as lower mortgage rates drove higher prepayment activity. The next day, Jan. 30, the company’s stock fell $49.78 per share, or 33.3%, to close at $99.92 per share.
The case highlights the risk that investors say they were not given a clear enough picture before the market absorbed the results. Rosen said it is looking for investors to join a prospective class action on a contingency fee basis. The firm listed case_id=51887 and provided contact numbers including 866-767-3653, 686-1060 and 202-3827.